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Civil Law Summer Reviewer
– agency comprises all thebusiness of the principal
– agency comprises one ormore specific transactions
4.As to authority conferred
Couched in general terms
–agency is created in general termsand is deemed to comprise onlyacts in the name and representationof the principal.
Simple or Commission
– agentacts in his own name but for theaccount of the principal.
Forms of Agency:GR
: Appointment of an agent may be oral orwritten; no formal requirements
: When the law requires a specific form(
agent’s sale of real property or any interest therein)
Agency is presumed to be for acompensation, unless there is proof to the contrary.
The agent does not have to prove that theagency is for compensation.
presumption that theagency is for a compensation may becontradicted by contrary evidence
negotiate contracts relative to property inbehalf of others and for a compensation/fee
When Broker Entitled to Compensation:
Whenever he brings to his principal aparty who is able and willing to take theproperty, and enter into a valid contract uponthe terms named by the principal, althoughthe particulars may be arranged and thematter negotiated and completed between theprincipal and the purchaser directly
However, a broker is never entitled tocommission for unsuccessful efforts.
Manotoc Brothers, Inc. v. CA
221 SCRA 224
(1993)The broker should be paid his commission where heis the
efficient procuring cause
in bringing thesale.
Efficient procuring cause:
when there is a close proximate and causal connection between theefforts and labor of the agent and the principal’ssale of property.
LAW ON DOUBLE AGENCY
Disapproved by law for being againstpublic policy and sound morality
where the agent acted with full knowledge andconsent of the principals
Right of agent to compensation in case of double agency:
With knowledge of both principals
-recovery can be had from both principals
Without the knowledge of bothprincipals
- the agent can recover fromneither
With knowledge of one principal
- as tothe principal who knew of that fact and asto the agent, they are in
andthe courts shall leave them as they were,the contract between them being void asagainst public policy and good morals
Acceptance by the agent may also beexpress, or implied from his acts which carry out the agency, or from his silence or inactionaccording to the circumstances.
Between persons who are present, theacceptance of the agency may also be implied if the principal delivers his power of attorney to the agent and the latter receives it without any objection.
Between persons who are absent, theacceptance of the agency cannot be implied fromthe silence of the agent, except:1.When the principal transmits his power of attorney to the agent, who receives it without any objection;
When the principal entrusts to him by letter or telegram a power of attorney withrespect to the business in which he ishabitually engaged as an agent, and he did not reply to
the letter or telegram.
Forms of Acceptance by Agent:
- when it is oral or written
-when it can be inferred from theacts of the agent which carry out theagency, or from his silence of inactionaccording to the circumstances
Between persons who arepresent
– implied acceptance if theprincipal delivers his power of attorney to the agent and the latterreceives it without any objection
Between persons who areabsent –
acceptance not deemedimplied from the silence of theagent.
:i.When the principal transmits hispower of attorney to the agent
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